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On June 5, 2024, the United States 5th Circuit Court of Appeals issued a decision vacating the SEC private funds rule. The court determined that the SEC failed to justify the necessity and scope of the new requirements in relation to investor protection and market stability. The court’s ruling impacts all aspects of the previously established rule for private equity and hedge funds, effectively nullifying its application.

Regulatory change is here for Private Fund Advisers. As of August 23, 2023, the SEC implemented new regulations and updates known as the “Private Fund Adviser Rules” (Rules) under the Investment Advisers Act of 1940. The Rules represent the most notable regulatory influence on Private Funds since 2010. These regulations impact both SEC-registered and unregistered private fund managers.

On January 10, 2024, the Securities and Exchange Commission (“SEC”) granted approval to spot bitcoin exchange-traded products, a little over 10 years after the first application with the SEC to create a spot bitcoin product. Within the first three days of trading, bitcoin exchange-traded funds (ETFs) pulled in just under $900 million from investors. While it may be tempting to jump on the bandwagon to invest in a spot bitcoin ETF, there are several matters that investment advisers of registered mutual funds (or exchange-traded funds) should consider before adding this asset class to a fund’s investment strategy.

From 2008 through today, the percentage of U.S. wealth held by Baby Boomers has been relatively constant..

In the new normal, outsourcing presents the opportunity for strategic partnerships that provide solutions to investment managers..

The decision to maintain critical but non-core investment management functions in-house versus outsourcing is one contemplated seriously and frequently by private fund managers (“Managers”) looking to optimize their resources.